Table 18-9

Table 18-9 shows the income tax brackets and tax rates for single taxpayers in Monrovia.
-Refer to Table 18-9.Sylvia is a single taxpayer with an income of $70,000.What is her marginal tax rate and what is her average tax rate?
A)marginal tax rate = 30%; average tax rate = 30%
B)marginal tax rate = 8%; average tax rate = 19.3%
C)marginal tax rate = 30%; average tax rate = 22.5%
D)marginal tax rate = 20%; average tax rate = 30%

Question

Table 18-9
  
Table 18-9 shows the income tax brackets and tax rates for single taxpayers in Monrovia.
-Refer to Table 18-9.Sylvia is a single taxpayer with an income of $70,000.What is her marginal tax rate and what is her average tax rate?
A)marginal tax rate = 30%; average tax rate = 30% 
B)marginal tax rate = 8%; average tax rate = 19.3% 
C)marginal tax rate = 30%; average tax rate = 22.5% 
D)marginal tax rate = 20%; average tax rate = 30%

Quizplus · Accepted Answer

The marginal tax rate is the rate on the last dollar of income, which is 30% for Sylvia. The average tax rate is the total tax paid divided by total income, which is 22.5%.

Table 18-9 Table 18-9 Shows the Income Tax Brackets and Tax Rates